What is land tax?

Owning property in Victoria may incur land tax. Generally if a property is classified as an individual’s principle place of residence than the property is generally exempt.

If a property is determined to be liable for land tax, then the State Revenue Office will issue the land tax assessment notice which will list all properties that are owned by the individual or relevant entity. This will include any other properties either jointly owned with another or any interest in any trust-like land that a person may hold.

The land tax assessment notice includes a site valuation for each property which in turn is then used to calculate the entity’s land tax liability.

There are a few exemptions to land tax that may be applicable as the assessment includes what land is owned, what the land is used for and the total value of the land held. These exemptions include the following:

(a)          The property is your principle place of residence; or

(b)          The land is primary production land; or

(c)          The land is used as a rooming house or is used by charitable institutions.

How do I make a land tax objection?

You are required to lodge an objection with the State Revenue Office within 60 days of receipt of your Land Tax Assessment Notice.

You must submit your objection with clear written detail and explain the reasons why you disagree with the assessment and the decision of the State Revenue Office.

Am I eligible for any stamp duty concessions?

Stamp duty is a transfer duty imposed by the State Revenue Office when you purchase or acquire a property in the state of Victoria. The duty amount payable will depend on a variety of factors including the purchase price in which you purchase the property for, whether there are any exemptions or concessions applicable to the transaction and whether you are a foreign purchaser.

There are a variety of stamp duty concessions when you purchase a property including:

  • First home owner grant;
  • First home owner duty exemption or concession;
  • Off-the-plan concession;
  • Pensioner concession;
  • Principle place of residence concession;
  • Young farmers’ exemption or concession;
  • Regional commercial or industrial land concession.

Am I a foreign purchaser?

A foreign purchaser is defined as a foreign natural person, a foreign corporation or a trustee of a foreign trust.

A foreign natural person is further defined as a person who is not an Australian citizen or permanent resident; or a person who holds a New Zealand citizen with a Special Category Visa (subclass 44).

If you are purchasing a property in the state of Victoria as a foreign purchaser after 1 July 2016 then you will be liable for an increased amount of duty at a rate of 7% for residential properties.

Is my property subject to GST?

GST applies to certain property transactions if the Vendor, is registered or required to be registered for GST purposes.

The GST treatment for a property varies depending on the different type of property or its intended purpose.

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